Adani Ports and Special Economic Zones (APSEZ) Ltd. announced on Wednesday that it is buying a 31.5 percent market share in Gangavaram Port Limited (GPL) from Windy Lakeside Investment Limited (a Warburg Pincus affiliate) for Rs 1,954 crore.
The recent venture, according to APSEZ, a core affiliate of the diversified Adani Group, increases its market share to 30% across 12 destinations in India. DVS Raju and Family, who own a 58.1 percent share in GPL, are also in talks with Adani Ports.
Legal processes are pending on the purchase. GPL is near the Vizag Port in northern Andhra Pradesh. With a 64 MMT length, it is Andhra Pradesh’s second-largest non-major port. It was built under a concession from the Government of Andhra Pradesh (GoAP) that lasts until 2059.
“GPL is a multi-purpose, all-weather, deep-water harbor capable of managing massive cargo super cape scale vessels weighing up to 200,000 DWT. It currently runs 9 berths and has 1,800 acres of a freehold property. GPL has enough headroom to accommodate potential development with a master plan capability of 250 MMTPA and 31 berths “In a filing, APSEZ said.
Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel are only a few of the dry and bulk materials that GPL manages. It is a gateway to the hinterland spread spanning 8 states across eastern, western, southern, and central India.
GPL had a freight volume of 34.5 MMT in FY20, generating Rs 1,082 crore in sales and Rs 634 crore in EBITDA (margin of 59 percent). Profit After Tax (PAT) has arrived at Rs 516 crore. The corporation is debt-free with a cash flow of more than Rs 500 crore.
DVS Raju and Family (Promoter) owns 58.1 percent of the corporation’s compensated equity shares, whereas the Andhra Pradesh government holds 10.4 % and Warburg Pincus owns 31.5 percent.